Money not turned over

The $30,000 pledged by the Pea Ridge Booster Club to the Blackhawk Foundation has not been received.

“We’re moving forward with the Blackhawk Foundation,” Rick Neal, school superintendent said Tuesday. “At this time, we have not received any of the funds toward the activity accounts.”

Neal said equipment - grills and hot dog roller - from the concession stands were turned over to school o◊cials, as were keys to school facilities.

“We’ve been in conversation about this for four months,” Neal said, although he began telling Booster Club leaders Mary King and Lisa Abraham a year ago about the transition. He saidhe began in-depth discussions in March. He said Tony Travis, athletic director, o◊ered to allow the former Booster Club to be the concessions committee in charge of concessions for all sports.

“They informed us they would not be able to provide concessions for volleyball and track,” Neal said. He said that if they couldn’t do it all, the foundation would do it. He said the money is to all go through the school accounts. The split for concessions was to be 70 percent to the foundation and 30 percent to the concessions committee for supplies.

“I asked them for a fi nancial statement so I could go to the board with it,” Neal said. “I wanted everything to be transparent.”

He said he has received spreadsheets reporting expenses and income, but not bank statements.

Mary King declined to speak on the record.

Asked why he asked for the fi nancial statements when they had not ever been reported to the school, Neal said: “Because I’m sitting in this chair now. I want to be a good steward of the money and facilities entrusted to the district. Any time someone uses school facilities for profit, we need to have an accounting.

“The community needs to know about any money used for - or gained from - activities on school property,” he said, explaining that in researching state law and local school policy it became apparent that he is accountable for the funds.

Neal sent a letter to Mary King with the Pea Ridge Booster Club on July 30 including both state law and local School Board policies governing groups and fundraising activities on school facilities.

“The auditors have taken exception to allowing the money derived from the sales of food and drinkat concession stands located on school property at school sponsored events - all monies collected in that manner - to not be turned over to the Pea Ridge Schools for placement in an appropriate activity fund,” Neal wrote. He asked that the Booster Club seek approval from the School Board at the August meeting for their organization, share their bylaws and names of the members of the board of directors, documentation concerning scholarships and the $30,000 previously pledged to the Foundation.

Neal said Arkansas School Board policy states that “activity funds” are part of school district money and must be openly reported. Those funds include “sale of tickets to athletic contests or other school-sponsored activities; the sale of food, except that which is sold in the lunchroom; the sale of soft drinks, school supplies and books; and fees charged by clubs and organizations.” The law further states “the superintendent of the school … shall be the o◊- cial custodian of all activityfunds … and shall be responsible and accountable for funds.” Those records are open to audit.

The Pea Ridge School Board adopted a policy in line with state law in May 2004 and revised it in 2007.

The policy states that all fundraising activities must be pre-approved in writing by the superintendent and that supporting organizations “must have open membership and have their bylaws approved by the school principal, the superintendent and the board.

School personnel shall assist approved booster organizations in their e◊orts to the extent practicable.” The policy also states that all equipment donated to the district becomes the property of the district.

Furthermore, Neal said, he has an opinion from the Arkansas attorney general that states revenues generated from concession stands at athletic events are under the responsibility of the school superintendent.

He said all money generated by ticket sales, concessions and merchandise will go into a public account at the district o◊ce.

News, Pages 1 on 08/07/2013